BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 739| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 739 Author: Peace (D) Amended: 7/16/01 Vote: 27 - Urgency Prior Senate votes note relevant ASSEMBLY FLOOR : 54-26, 7/16/01 - See last page for vote SUBJECT : State Budget Act of 2000-01 SOURCE : Author DIGEST : Assembly amendments delete the prior version. As it left the Senate, this bill, authored by Senate Budget and Fiscal Review Committee, was intended to be a possible Trailer bill relative to administration of state government. This bill contains the contents of SB 75 (Peace), the 2000-01 State Budget Bill with various changes, as specified in the Analysis section below. ANALYSIS : Budget Process Overview With the submission of the Governor's Budget, which is required by January 10 of each year, the chair of the Senate Budget and Fiscal Review and Assembly Budget Committees each introduce a Budget Bill which contains CONTINUED SB 739 Page 2 appropriations to finance the program levels proposed in the Governor's Budget. Throughout the spring, and with the assistance of committee consultants and the Legislative Analyst, who prepares a detailed analysis of the Governor's Budget, the fiscal committees of each House of the Legislature hold hearings to determine if changes should be made in the Governor's Budget. At these hearings, representatives from the state department whose Budget is being heard, the Department of Finance, the Legislative Analyst, and the public may be called upon to provide official testimony. Changes desired by the Administration concerning events occurring after the Governor's Budget is submitted are included in "Finance Letters" addressed to and considered by the Senate and Assembly Budget committees. In mid-May, the Department of Finance updates its estimates of current year, and budget year revenues, expenditures (including any final Administration expenditure proposals) and surplus. This provides the Legislature with the most current estimate of resources that will be available for expenditure. At the completion of all the hearings, each House passes its Budget Bill, a Conference Committee of six legislators is chosen to receive differences in the two bills and to incorporate a "Conference Committee Version" into one of the bills. The bill is then sent to the floor of each House and, if passed by two-thirds, is enrolled to the Governor. If it is not passed, a new Conference Committee is formed and the conference process is repeated. Some times it has become necessary for the Senate Pro Tem, Assembly Speaker, Senate Minority Leader, Assembly Minority Leader, and the Governor to meet to resolve major issues. The Legislature is required under the State Constitution to pass the Budget by June 15th of each year. Upon receipt of the Budget Bill, the Governor meets with his advisors to make reductions or eliminate particular items of expenditure (known as the item-veto). The Governor then signs the Budget Bill, and it becomes the Budget Act. Under the State Constitution, the Governor must sign the Budget by June 30th of each year. The SB 739 Page 3 Legislature may then consider overriding any vetoes the Governor has made and may do so by a two-thirds vote of each House. This bill is the $101.1 billion State Budget for 2000-01 which was contained in SB 75 with the following additional amendments specified below: 1. Augments the Budget Act by $27.3 million, including $19.3 million (General Fund) and $8 million (Public Transportation Account), for Agricultural and Rural Relief Rebates of sales tax paid for farm and forestry equipment and machinery ($ 13 million), diesel fuel used in agriculture ($8 million), liquefied petroleum gas for residential use ($5.5 million), and thoroughbred breeding stock ($800,000). 2. Augments the Budget by $8 million for Klamath River Crisis Economic Assistance and Mitigation activities. 3. Augments the Budget by $5 million for the "Buy California" program. 4. Augments the Budget by $33.35 million for additional law enforcement activities, including a $10 million augmentation (total of $30 million) for local law enforcement grants and control language providing a minimum grant to the sheriff departments of rural and small counties to supplement and not supplant current law enforcement activities, and $5.35 million for additional augmentations to specified police departments. 5. Adds provisions to the Budget to reimburse the full costs incurred by the County of Shasta for the homicide trial of the People v. Williams and Williams , the County of San Luis Obispo for the homicide trial of the People v. Krebs , and the County of Placer for the homicide trial of the People v. Juarez Suarez . 6. Augments the Budget by $5 million (State Highway Account) for the City of Shafter for the Southern San Joaquin Valley Intermodal Facility. SB 739 Page 4 7. Augments the Budget by $300,000 to reimburse school districts for costs incurred from snow removal activities 8. Augments the Budget by $50,000 for the California Postsecondary Education Commission to conduct a study of higher educational needs of students in Superior California. 9. Augments the Budget Act by $3.24 million for various local projects. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No Provides for a $101.1 billion State Budget. ASSEMBLY FLOOR : AYES: Alquist, Aroner, Briggs, Calderon, Canciamilla, Cardenas, Cardoza, Cedillo, Chan, Chavez, Chu, Cohn, Corbett, Correa, Diaz, Dickerson, Dutra, Firebaugh, Florez, Frommer, Goldberg, Havice, Horton, Jackson, Keeley, Kehoe, Kelley, Koretz, Liu, Longville, Lowenthal, Matthews, Migden, Nakano, Nation, Negrete McLeod, Oropeza, Papan, Pavley, Pescetti, Reyes, Salinas, Shelley, Simitian, Steinberg, Strom-Martin, Thomson, Vargas, Washington, Wayne, Wesson, Wiggins, Wright, Hertzberg NOES: Aanestad, Ashburn, Bates, Bogh, Bill Campbell, John Campbell, Cogdill, Cox, Daucher, Harman, Hollingsworth, La Suer, Leach, Leonard, Leslie, Maddox, Maldonado, Mountjoy, Robert Pacheco, Rod Pacheco, Richman, Runner, Strickland, Wyland, Wyman, Zettel DLW:sl 7/17/01 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****